Question

Joseph purchased following shares, Find his total investment. 

Company A : 200 shares, FV = Rs. 2, Premium = Rs. 18. 

Company B : 45 shares, MV = Rs. 500

Company C : 1 share, MV = Rs. 10,540

Answer 1

For company A: 

FV = Rs. 2, premium = Rs.18, 

Number of shares = 200 

∴ MV = FV+ Premium 

= 2 + 18 

= Rs.20 

Sum invested = Number of shares × MV 

= 200 × 20 

= Rs.14000 

For company B: 

MV = Rs.500, Number of shares = 45 

Sum invested = Number of shares × MV 

= 45 × 500 

= Rs.22,500

For company C: 

MV = Rs. 10,540, Number of shares 

= 1 x 10540 

∴ Sum invested = Number of shares × MV 

= 1 × 10540

= Rs. 10,540 

∴ Total investment of Joseph = Investment for company A + Investment for company B + Investment for company C 

= 4000 + 22,500 + 10,540 

= Rs. 37040 

∴ Total investment done by Joseph is Rs. 37,040.